What kind of sectors do we want to be positioned in? Sector cycles matter because no sector consistently outperforms the Nifty 500. Over past four-year cycles, autos, consumer goods, healthcare, and oil & gas have each rotated as leaders. Autos, for example, outperformed between 2009–2012 and 2013–2016, saw a sharp period of underperformance leading into COVID, and rebounded over the last four years. From where we sit today, we expect autos to consolidate for one to two years and potentially underperform, which is why our exposure has been coming down through 2024 and 2025. These rotations are driven by valuations, public and private capex, and on-ground execution. As earnings growth narrows, getting positioning right — bottom-up and top-down — is critical, when you overweight a particular sector, considering if the risk-reward reasonably high for you to position yourself there.